🛠️Creating a new pool

Simple and permissionless process

Please note that you can't change any of the pool's parameters after it's been deployed.

Pool creation process is simple, but determining the optimal pool parameters depends on various factors, from market prices and liquidity to the risk tolerance of the pool participants.

Pool parameters

Pool tokens

Loan token address: the address of the lent token, which should be a non-rebasing ERC20-compliant token.
Collateral token address: the address of the token that borrowers will deposit and will be used as collateral. It should also be a non-rebasing ERC20-complaint token.

The two token addresses must not be the same, and you should double-check before deploying a new pool.

Collateral ratio model

Max collateral ratio: the maximum borrowable amount of the loan tokens that borrowers can borrow per 1 unit of collateral tokens. For example, if a pool has ETH as a collateral token and USDT as a loan token, and the max collateral ratio is 500:1, a borrower can borrow up to 500 USDT if they add a collateral of 1 ETH. This collateral ratio is independent of the prices of both tokens.
Surge utilization rate: the utilization rate at which the collateral ratio starts to fall to zero unless the pool's utilization drops below it.
Collateral ratio fall duration: the duration of the collateral ratio fall from max to zero. This duration should be set depending on token volatility, among other factors. It can be set in minutes, hours or days.
Collateral ratio recovery duration: The duration of the collateral ratio recovery from zero to max. This duration should be set depending on token volatility, among other factors. It can be set in minutes, hours or days.

Interest rate model

Minimum borrow rate: the borrow rate when the utilization rate is zero percent. It can be set to zero.
Surge borrow rate: the borrow rate when the utilization rate is at the surge utilization rate. It must be greater than or equal to the minimum rate and less than or equal to the maximum rate.
Maximum borrow rate: The borrow rate when the utilization rate is at 100 percent. It should be greater or equal to the surge rate.

You can create a pool with no interest rate if you set the three rates to 0.

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Pool parameters

Pool tokens

Loan token address: the address of the lent token, which should be a non-rebasing ERC20-compliant token.

Collateral token address: the address of the token that borrowers will deposit and will be used as collateral. It should also be a non-rebasing ERC20-complaint token.

The two token addresses must not be the same, and you should double-check before deploying a new pool.

Collateral ratio model

Max collateral ratio: the maximum borrowable amount of the loan tokens that borrowers can borrow per 1 unit of collateral tokens. For example, if a pool has ETH as a collateral token and USDT as a loan token, and the max collateral ratio is 500:1, a borrower can borrow up to 500 USDT if they add a collateral of 1 ETH. This collateral ratio is independent of the prices of both tokens.

Surge utilization rate: the utilization rate at which the collateral ratio starts to fall to zero unless the pool's utilization drops below it.

Collateral ratio fall duration: the duration of the collateral ratio fall from max to zero. This duration should be set depending on token volatility, among other factors. It can be set in minutes, hours or days.

Collateral ratio recovery duration: The duration of the collateral ratio recovery from zero to max. This duration should be set depending on token volatility, among other factors. It can be set in minutes, hours or days.

Interest rate model

Minimum borrow rate: the borrow rate when the utilization rate is zero percent. It can be set to zero.

Surge borrow rate: the borrow rate when the utilization rate is at the surge utilization rate. It must be greater than or equal to the minimum rate and less than or equal to the maximum rate.

Maximum borrow rate: The borrow rate when the utilization rate is at 100 percent. It should be greater or equal to the surge rate.

You can create a pool with no interest rate if you set the three rates to 0.